Facebook has approached academics and policy experts about forming a commission to advise it on global election-related matters, said five people with knowledge of the discussions, a move that would allow the social network to shift some of its political decision-making to an advisory body.
The proposed commission could decide on matters such as the viability of political ads and what to do about election-related misinformation, said the people, who spoke on the condition of anonymity because the discussions were confidential. Facebook is expected to announce the commission this fall in preparation for the 2022 midterm elections, they said, though the effort is preliminary and could still fall apart.
Outsourcing election matters to a panel of experts could help Facebook sidestep criticism of bias by political groups, two of the people said. The company has been blasted in recent years by conservatives, who have accused Facebook of suppressing their voices, as well as by civil rights groups and Democrats for allowing political misinformation to fester and spread online. Mark Zuckerberg, Facebook’s chief executive, does not want to be seen as the sole decision maker on political content, two of the people said.
Oversight Board, a collection of journalism, legal and policy experts who adjudicate whether the company was correct to remove certain posts from its platforms. Facebook has pushed some content decisions to the Oversight Board for review, allowing it to show that it does not make determinations on its own.
pays them through a trust.
The Oversight Board’s highest-profile decision was reviewing Facebook’s suspension of former President Donald J. Trump after the Jan. 6 storming of the U.S. Capitol. At the time, Facebook opted to ban Mr. Trump’s account indefinitely, a penalty that the Oversight Board later deemed “not appropriate” because the time frame was not based on any of the company’s rules. The board asked Facebook to try again.
In June, Facebook responded by saying that it would bar Mr. Trump from the platform for at least two years. The Oversight Board has separately weighed in on more than a dozen other content cases that it calls “highly emblematic” of broader themes that Facebook grapples with regularly, including whether certain Covid-related posts should remain up on the network and hate speech issues in Myanmar.
A spokesman for the Oversight Board declined to comment.
Facebook has had a spotty track record on election-related issues, going back to Russian manipulation of the platform’s advertising and posts in the 2016 presidential election.
bar the purchase of new political ads the week before the election, then later decided to temporarily ban all U.S. political advertising after the polls closed on Election Day, causing an uproar among candidates and ad-buying firms.
The company has struggled with how to handle lies and hate speech around elections. During his last year in office, Mr. Trump used Facebook to suggest he would use state violence against protesters in Minneapolis ahead of the 2020 election, while casting doubt on the electoral process as votes were tallied in November. Facebook initially said that what political leaders posted was newsworthy and should not be touched, before later reversing course.
The social network has also faced difficulties in elections elsewhere, including the proliferation of targeted disinformation across its WhatsApp messaging service during the Brazilian presidential election in 2018. In 2019, Facebook removed hundreds of misleading pages and accounts associated with political parties in India ahead of the country’s national elections.
Facebook has tried various methods to stem the criticisms. It established a political ads library to increase transparency around buyers of those promotions. It also has set up war rooms to monitor elections for disinformation to prevent interference.
There are several elections in the coming year in countries such as Hungary, Germany, Brazil and the Philippines where Facebook’s actions will be closely scrutinized. Voter fraud misinformation has already begun spreading ahead of German elections in September. In the Philippines, Facebook has removed networks of fake accounts that support President Rodrigo Duterte, who used the social network to gain power in 2016.
“There is already this perception that Facebook, an American social media company, is going in and tilting elections of other countries through its platform,” said Nathaniel Persily, a law professor at Stanford University. “Whatever decisions Facebook makes have global implications.”
Internal conversations around an election commission date back to at least a few months ago, said three people with knowledge of the matter.
An election commission would differ from the Oversight Board in one key way, the people said. While the Oversight Board waits for Facebook to remove a post or an account and then reviews that action, the election commission would proactively provide guidance without the company having made an earlier call, they said.
Tatenda Musapatike, who previously worked on elections at Facebook and now runs a nonprofit voter registration organization, said that many have lost faith in the company’s abilities to work with political campaigns. But the election commission proposal was “a good step,” she said, because “they’re doing something and they’re not saying we alone can handle it.”
BALTIMORE — When Target announced that it was opening a store in Mondawmin, a predominantly Black neighborhood in this city struggling with crime and poverty, it seemed like a ticket to a turnaround.
And from the start, it was a practical success and a point of community pride. The store, which opened in 2008, carried groceries, operated a pharmacy and had a Starbucks cafe, the only one in this part of Baltimore’s west side.
People came from across the city to shop there, helping to soften the Mondawmin area’s reputation for crime and the looting that followed protests over the 2015 death of Freddie Gray, who was fatally injured while in city police custody. As an employer, Target seemed to cater to the community’s needs, making a point of hiring Black men and providing an office in the store for a social worker to support the staff. Elijah Cummings, the congressman from Baltimore, was known to shop there.
But in February 2018, with almost no warning or explanation, Target closed the store.
Residents, especially those without cars, lost a convenient place to shop for quality goods. And a marker of the community’s self-worth was suddenly taken away.
shut two stores in predominantly Black neighborhoods on Chicago’s South Side as the company made plans to build a new store on the wealthier and mostly white North Side.
according to local legend, visited the property in the 19th century and observed the area’s bountiful cornfields. Mondawmin is derived from a Native American phrase for “spirit of corn.”
In the 1950s, the property was sold to a real estate developer, who turned the rural lot into the city’s first shopping mall.
The Mondawmin Mall featured a Sears, a five-and-dime, and eventually an indoor fountain and spiral staircase, advertised as the “seventh wonder of Baltimore,’’ according to Salvatore Amadeo, an amateur historian who makes YouTube documentaries about malls, including a segment on Mondawmin.
When the assassination of the Rev. Dr. Martin Luther King Jr. in 1968 sparked protests across Baltimore and caused “white flight” to the suburbs, the mall struggled. Over time, it ceased to be a big draw for shoppers outside the area.
The stores became more focused on Black fashion and neighborhood services. A large barbershop occupies the mall’s bottom floor, and there is an agency that helps formerly incarcerated people find jobs.
a forceful statement, promising to reopen one of its stores in Minneapolis damaged in the protests against police violence.
Today’s Best Reader Comments
The closing of a Target store shows the limits of a pledge to help Black communities: “A business exists to make money. Period. If it doesn’t it will close, move, or change the business. This is the limits of capitalism.” sjs, Bridgeport, Conn.
She writes about the law. But could she really help free a prisoner?: “Justice has to keep growing for the masses of incarcerated innocents in the U.S. I will share in hopes that this article will be read and shared again and again.” Diane, Chicago.
Masks again? The Delta variant prompts a reconsideration of precautions.: “Wearing a mask indoors for sparing amounts of time (for the majority) is a minor inconvenience. While I, too, am annoyed by those who are choosing not to be vaccinated— my actions are based on those who are medically vulnerable and/or ineligible.” SB, Massachusetts.
“The murder of George Floyd has unleashed the pent-up pain of years, as have the killings of Ahmaud Arbery and Breonna Taylor,” Mr. Cornell said in the statement. “We say their names and hold a too-long list of others in our hearts. As a Target team, we’ve huddled, we’ve consoled, we’ve witnessed horrific scenes similar to what’s playing out now and wept that not enough is changing.”
One of the names on that “too-long list” is Freddie Gray. Mr. Gray was from Baltimore’s west side and was arrested a few blocks from the Mondawmin Mall in April 2015 for possessing a knife.
prosecutors described as a “rough ride,” his spinal cord was 80 percent severed.
One of the first big waves of protests over his death occurred at the Mondawmin Mall. Protesters began throwing rocks at police officers, and the mall was looted. Some students from Frederick Douglass High School, across from the mall and the alma mater of the civil rights giant Thurgood Marshall, the first Black man to serve on the U.S. Supreme Court, were caught up in the melee.
Target was spared serious damage. But for a time, many shoppers, both Black and white, stayed away from the store, recalled Mr. Johnson, who now works for the Postal Service.
“Mondawmin already had a bad rap with out-of-towners,” he said.
Shoppers eventually returned to the Target in Mondawmin, he said. But he noticed that the city’s other Target store, which had opened in a trendy area near the harbor in 2013, was getting more popular.
In November 2017, Mr. Mosby, then a state lawmaker, got a call from a resident whose family worked at the store: The Target in Mondawmin was shutting its doors in a few months. “I thought it was a just a rumor at first,” Mr. Mosby said.
Some residents and neighborhood leaders were told that the store struggled with high rates of theft, known in the retail industry as “shrinkage.” But Mr. Ali, the store’s former manager, said, “That was untrue,” at least while he worked there. The store met its profit and shrinkage goals during his four years as manager, which ended in 2012, years before the store closed.
Still, Mr. Ali, now the executive director of a youth mentoring group, acknowledged challenges that he said were unique to a store in a “hyper-urban area.”
A significant amount of inventory was once damaged in a fire in a storage area next to the store, and the company had to spend $30,000 a month for an armed Baltimore police officer to keep watch, he said.
There may have been additional considerations. “I think what happened after Freddie Gray spooked Target,” Mr. Ali said.
Other national chains reacted differently. TGI Fridays stuck with its plans to open a restaurant at the Mondawmin Mall, months after the protests. The restaurant remains one of the neighborhood’s only free-standing, sit-down chain restaurants.
Mr. Mosby and other officials tried to negotiate with Target to keep the store open, but the company said its mind was already made up.
“They weren’t interested in talking to us,” Mr. Mosby said. “They wouldn’t budge.”
A storefront still sitting empty
The temperature gauge outside Pastor Lance’s car registered 103 degrees as he drove through Greater Mondawmin and its surrounding neighborhoods. He was wearing a white shirt emblazoned with his church’s logo — a group of people, of all races and backgrounds, walking toward the sun, holding hands.
A Baltimore native, Pastor Lance used to work as a computer programmer at Verizon. He made “lots of money,” he said. “But I didn’t feel fulfilled.”
He became a pastor and took over a nonprofit company that develops park space and playgrounds and hosts a summer camp for schoolchildren with a garden surrounded by a meadow near the mall.
“But some days, I wonder if I made a mistake,” he said. “It’s great to have a park, but if you don’t have a good job, you aren’t going to be able to enjoy a park.”
He drove along a street with liquor stores and houses with boarded-up windows. A woman tried to flag him down for a ride. But the poverty he saw was not what made him most upset.
It was when Pastor Lance steered through an enclave of big houses and immaculate lawns, only a short distance away, that the anger rose in his voice.
“You are telling me that these people wouldn’t shop at Target for lawn furniture or school supplies,” he said. “I am not trying to gloss over the problems, but there is also wealth here.”
“If shrinkage was a problem, hire more security guards or use technology to stop people from stealing,” he added.
He circled back to the Mondawmin Mall, where families ducked into the air conditioning for a bubble tea or an Auntie Anne’s pretzel. He drove past the TGI Fridays and then past the Target, its windows still covered in plywood and the trees in the parking lot looking withered and pathetic.
Pastor Lance refused to accept that a Target could not succeed here.
“If you are really interested in equity and justice,” he said, “figure out how to make that store work.”
WASHINGTON — The disappointing jobs report released Friday by the Labor Department is posing the greatest test yet of President Biden’s strategy to revive the economy, with business groups and Republicans warning that the president’s policies are causing a labor shortage and that his broader agenda risks stoking runaway inflation.
But the Biden administration showed no signs on Friday of changing course, with the president defending the more generous jobless benefits included in the $1.9 trillion bill he signed into law in March and saying the $4 trillion in spending he proposed for infrastructure, child care, education and other measures would help create more and better-paying jobs after the pandemic.
Speaking at the White House, Mr. Biden urged “perspective” on the report, which showed only 266,000 new jobs added in April. He said it would take time for his aid bill to fully reinvigorate the economy and hailed the more than 1.5 million jobs added since he took office. And he rejected what he called “loose talk that Americans just don’t want to work.”
“The data shows that more workers are looking for jobs,” he said, “and many can’t find them.”
Republicans cast the report as a sign of failure for Mr. Biden’s policies, even though job creation has accelerated since Mr. Biden replaced President Donald J. Trump in the White House. They called on his administration to end the $300 weekly unemployment supplement, while several Republican governors — including those in Arkansas, Montana and South Carolina — moved to end the benefit for unemployed people in their states, citing worker shortages.
relief money to subsidize tax cuts, which could further slow the rollout.
Mr. Biden said at the White House that the administration would begin releasing the first batch of money to state and local governments this month. He said the money would not restore all of the lost jobs in one month, “but you’re going to start seeing those jobs in state and local workers coming back.”
The administration also took steps on Friday to get money out the door more quickly, saying the Treasury Department would release $21.6 billion of rental assistance that was included in the pandemic relief legislation to provide additional support to millions of people who could be facing eviction in the coming months.
Officials said they expected increased vaccination rates to ease some lingering fears about returning to jobs in the pandemic. The number of Americans 18 to 64 who are fully vaccinated grew by 22 million from mid-April, when the survey for the jobs report was conducted, to Friday. That was an acceleration from the previous month. Some White House officials said the administration’s push to further increase the ranks of the vaccinated could be the most important policy variable for the economy this summer.
Treasury Secretary Janet L. Yellen, speaking at the White House, said that a lack of child care related to irregular school schedules was making it a challenge to get the labor market back to full strength. She also said that health concerns about the pandemic were holding back some workers who might return to the market.
“I don’t think that the addition to unemployment compensation is really the factor that’s making the difference,” Ms. Yellen said.
She said that she believed the labor market was healthier than the figures released on Friday suggested, but she allowed that the economic recovery would take time.
“We’ve had a very unusual hit to our economy,” Ms. Yellen said, “and the road back is going to be somewhat bumpy.”
Ms. Boushey and Mr. Bernstein said that it appeared the economy was working through a variety of rapid changes related to the pandemic, including supply chain disruptions that have hurt automobile manufacturing by reducing the availability of semiconductor chips and businesses beginning to rehire after a year of depressed activity because of the virus.
“It’s our view that these misalignments and bottlenecks are transitory,” Mr. Bernstein said, “and they’re what you expect from an economy going from shutdown to reopening.”
Other key economic officials treated the report as a sign that the labor recovery ahead is likely to prove wildly unpredictable. Robert S. Kaplan, the president at the Federal Reserve Bank of Dallas, said in an interview that his economics team had warned him that the April report might show a significant slowdown as shortages of materials — including lumber and computer chips — and labor bit into employment growth.
He said he was hoping to see those supply bottlenecks cleared up, but he was watching carefully in case they did not resolve quickly.
“It shows me that getting the unemployment rate down and moving forward to improved employment to population is going to have fits and starts,” Mr. Kaplan said. He noted that sectors that were struggling to acquire materials, like manufacturing, shed jobs, and he said leisure and hospitality companies would have added more positions if not for challenges in finding labor.
“It’s just one jobs report,” cautioned Tom Barkin, the president of the Federal Reserve Bank of Richmond, in Virginia. But he said labor supply issues could be at play: Some people may have retired, others may have health concerns, and unemployment insurance could be encouraging low-paid workers to stay at home or allowing them to come back on their own terms.
“I get the feeling that people are being choosy,” Mr. Barkin said. “The first question I have in my mind is — is it temporary or is it more structural?”
He said that the supply constraints playing out were likely to fade over time, and that while businesses complain about rising input costs and might have to raise entry-level wages somewhat, he struggled to see that leading to much higher inflation — the kind that would worry the Fed.
The Fed is trying to achieve maximum employment and stable inflation around 2 percent on average. It has pledged to keep its cheap-money policies, which make borrowing inexpensive, in place until it sees realized progress toward those goals.
Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, said the payrolls disappointment vindicated the Fed’s slow-moving stance.
“I feel very good about our policy approach, which is outcome-based,” Mr. Kashkari said, speaking on a Bloomberg television interview shortly after the report came out. “Let’s actually allow the labor market to recover, let’s not just forecast that it’s going to recover.”
Federal Reserve officials have been facing a chorus of criticism for pledging to keep interest rates at rock bottom and for buying government-backed bonds at an enormous scale even as the United States economy bounces back from the pandemic. But after a weaker-than-expected April jobs report, they may have an easier time selling the idea that patience is a virtue.
“I feel very good about our policy approach, which is outcome-based,” Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said in a Bloomberg television interview shortly after the report came out. “Let’s actually allow the labor market to recover, let’s not just forecast that it’s going to recover.”
American employers added 266,000 jobs last month, far short of the one million that economists had been expecting. Analysts agreed that the figure was a severe disappointment, but lined up on little else: Some pointed to the numbers as a sign that the economy remains in a deep hole, while others saw in it validation for the idea that expanded unemployment insurance is discouraging work, causing labor supply issues that are hurting businesses.
What is clear is that the economy is nowhere near any mainstream estimate of full employment. And how the labor market recovery will look going forward — as the economy reopens and a huge number of displaced workers must reshuffle into jobs that suit their needs and interests — is wildly uncertain.
economically damaging downward spiral. Still, Fed officials have faced recent criticism for their new, less forward-looking approach. Some economists have worried that it could make them too slow to react to changes in the economy.
Fed doctrine had long been “to take away the punch bowl before the party gets out of hand,” Lawrence H. Summers, a former Treasury secretary, said at a recent webcast event. “What we’ve now said is — we’re not going to do anything until we see a bunch of drunk people staggering around.”
April’s report could make it easier for the central bank to justify the new method, since it shows how challenging it will be to forecast the speed and tenor of the recovery from the pandemic, which is likely to proceed differently than economic healing after a typical recession would.
“This is a highly uncertain environment that we’re in,” Mr. Kashkari told Bloomberg. “We have a long way to go, and let’s not prematurely declare victory.”
Matt Guse would hire a dozen machinists — if only he could find them.
The owner of MRS Machining, a maker of precision metal parts in rural Augusta, Wis., Mr. Guse finds business is rebounding so quickly as the pandemic’s effect eases that his 47-worker shop is short-handed.
“I’ve turned down a million dollars’ worth of work in the last two weeks,” he said. “Doing that, it’s hard to go to bed at night when you put your head to the pillow. I have open capacity, but I need more people.”
After a sharp downturn when the pandemic hit last year, factories are humming again. But the recovery’s speed has left employers scrambling. Despite huge layoffs — manufacturing employment initially dropped by 1.4 million — some companies find themselves desperate for workers.
In other cases, shortages of parts like semiconductors and supply chain disruptions have made orders hard to fill and created fresh uncertainty.
orders for durable goods — like cars and appliances — rose half a percentage point in March, prompting Barclays to lift its tracking estimate of economic growth for the first quarter to 1.4 percent, or 5.6 percent at an annualized rate.
On Thursday, the government will release its initial reading on economic growth in the first three months of the year, and manufacturing is expected to be among the bright spots. The consensus of analysts polled by Bloomberg is that the report will show gross domestic product expanded by 1.7 percent, up from 1.3 percent.
At one point, factory production was down substantially because of the pandemic, but it should return to pre-Covid-19 levels by the third quarter of this year, according to Chad Moutray, chief economist for the National Association of Manufacturers.
work in factories. Two decades ago, that figure stood at just over 17 million.
average hourly wage of manufacturing workers is $29.15, while workers in leisure and hospitality, another field that draws people with less education, earn $17.67 an hour.
Mr. Paul hopes that Mr. Biden’s plan to revitalize American manufacturing as part of his larger infrastructure effort will bear fruit.
“He’s pretty serious about some form of industrial policy,” Mr. Paul said, citing the administration’s call for action in making products like semiconductors and electric vehicles. “It may be possible for Biden to do what no president has since manufacturing began its job decline and reverse the losses.”
spending to advance electric vehicles.
The $2 trillion plan, with its focus on rebuilding roads and bridges as well as the electric grid, could help companies like Auburn Manufacturing of Maine, said its chief executive, Kathie Leonard.
“We feed the companies whose products go into infrastructure,” said Ms. Leonard, describing the heat- and fire-resistant fabrics Auburn makes at two factories in central Maine, about a half-hour from Portland. “The infrastructure plan holds promise for companies like us.”
“You have to work at being an optimist,” she said. “We’re not going to hire 25 people, but maybe five. We need to hire a technical director, fabricators, and we need staff to help with e-commerce.”
The semiconductor shortages are a headache for Christie Wong Barrett, chief executive of MacArthur Corporation, a maker of labels and decals outside Flint, Mich. She said orders had been delayed by car companies — her major customers — that couldn’t find enough of the chips they needed to keep cars coming off the assembly lines.
“Customers are struggling to meet launch timelines and production targets,” she said. “Orders are either reduced in volume or delayed. It trickles down to different suppliers, and we’re just getting a haircut across the board.”
MacArthur’s business had already been damaged when auto plants closed a year ago amid the pandemic lockdowns, cutting off demand for labels and decals like those showing tire pressure or indicating vehicle identification numbers.
Ms. Barrett was able to pivot and supply products for medical customers, averting all but a handful of layoffs for her work force of 50. She remains optimistic, despite the current logistical backups.
“It’s a horrible disruption right now, but I’m anticipating a strong recovery,” she said. “We never made major cuts, and as automotive production starts to recover more, I expect to hire several more people in the coming months.”
Ole (pronounced O-lee) Edward Anthony was born on Oct. 3, 1938, in Saint Peter, Minn., about 70 miles southwest of Minneapolis. He grew up in Wickenburg, Ariz., a town 60 miles northwest of Phoenix that once billed itself as the “dude ranch capital of the world.” His father, Rudolph Anthony, left his family soon after the move, and Ole and his sister, Sandra, were raised by their mother, Edna (Norell) Anthony, a nurse who ran a retirement home.
Mr. Anthony’s sister died in 2019. He had no immediate survivors.
His childhood, he said, was marked by drug abuse and crime, both petty and felonious — at one point he and a friend set fire to a 40-foot-tall wooden cross outside Wickenburg. He joined the Air Force in 1956 after being offered the choice of military service or prison.
Mr. Anthony was trained in electronics, and in 1958 he was sent to an island in the South Pacific, where he was supposed to watch a small nuclear test many miles away. But the explosion was much larger than expected, and the radiation left him with scores of knobby tumors throughout his body.
He left the military in 1959 and took a job with Teledyne, a defense contractor. In a 2004 profile in The New Yorker, he told the journalist Burkhard Bilger that he had continued his work for the Air Force, sneaking behind the iron and bamboo curtains to install long-range sensors to detect Chinese and Soviet nuclear tests, though a later investigation by The Dallas Observer, a weekly newspaper, called that claim into question.
Mr. Anthony moved to Dallas in 1962 and became involved in Republican politics, working on campaigns and, in 1968, narrowly losing a race for the State Legislature. He was, by his own account, living large, with a luxury high-rise apartment, a $70,000 annual salary (about $550,000 today) and a rotating series of girlfriends.
More than 18 million people tuned in to cable and broadcast networks for the reading of the verdict in the Derek Chauvin murder trial on Tuesday, a huge viewership total for a late afternoon, according to preliminary data from Nielsen.
An average of four million people watched CNN from 4:30 p.m. to 6:30 p.m., more than double the number of viewers the network drew the previous day in the same time slot, according to Nielsen. Another four million watched on ABC, and 3.4 million saw it on Fox News. MSNBC and CBS each had about three million viewers.
NBC’s viewership totals were not yet available, which means the verdict was likely seen on television by an audience of more than 20 million. And because Nielsen’s numbers do not include people who watched the proceedings on their phones or laptops, the total number of people who watched was certainly even bigger than that.
Viewer interest was strong throughout the three-week trial of Mr. Chauvin, the former Minneapolis police officer who murdered George Floyd last May. On several days, CNN had more viewers during key portions of the trial in the afternoon than it did in prime time, usually its most watched hours.
CNN’s sibling network, HLN, which covered the entirety of the trial, had its highest ratings since its coverage of the George Zimmerman trial in 2013. Mr. Zimmerman was the neighborhood watch volunteer in Florida who fatally shot Trayvon Martin, an unarmed Black teenager.
Andrew here. Yesterday’s guilty verdict against George Floyd’s murderer, a former Minneapolis police officer, was a symbol of something profound: a demonstrable shift in the way this country, increasingly supported by business, has strived for civil rights.
As we ponder the meaning of this decision, it is worth recalling a moment in 1965, in the middle of that era’s civil rights movement.
A Wall Street bond firm, C.F. Securities, told Alabama that it would “no longer buy or sell bonds issued by the state or any of its political subdivisions.” Gov. George C. Wallace, who objected to desegregation, had said the state shouldn’t pay for the National Guard to protect Martin Luther King Jr. and protesters in the Selma-to-Montgomery march.
The investment firm’s executive vice president, Donald E. Barnes, wrote to the governor that his failure “to protect the citizens of Alabama in their exercise of constitutional rights” amounted to “discouragements to Alabama’s economic future.” He insisted that the move was based on economic risk, but the letter made clear it was about more than that.
paid time off on Juneteenth; the N.B.A. emblazoned the words “Black Lives Matter” on courts; Netflix steered its cash into local banks that serve Black communities; Wall Street banks announced programs worth billions to support Black communities; and just last week, in perhaps the greatest demonstration of the new responsibility business is feeling, 700 companies and executives signed a letter opposing laws that make it harder for people to vote.
“The murder of George Floyd last Memorial Day felt like a turning point for our country. The solidarity and stand against racism since then have been unlike anything I’ve experienced,” Brian Cornell, the C.E.O. of Target, wrote in a note to employees of the Minneapolis-based retailer yesterday. “Like outraged people everywhere, I had an overwhelming hope that today’s verdict would provide real accountability. Anything short of that would have shaken my faith that our country had truly turned a corner.”
You know what? Justice is good for business.
HERE’S WHAT’S HAPPENING
The European Super League has collapsed. Plans to create a closed competition of top soccer clubs fell apart yesterday when six English teams withdrew, bowing to outrage from fans and threats by lawmakers. Shortly after, an official at the Super League said the project had been suspended, ending an effort to upend soccer’s multibillion-dollar economics.
outweigh a small risk of blood clots, but wants a warning added. U.S. regulators will decide whether to end a pause on the vaccine in the coming days.
Goldman Sachs releases worker diversity data. The Wall Street bank disclosed for the first time how many of its senior U.S. executives are Black: 49 out of more than 1,500. Banks agreed last year to publish more information about their work forces; Morgan Stanley has an even smaller share of Black executives than Goldman.
Apple’s new products raise competition concerns. The tech giant unveiled new iPads and iMacs, and a revamped podcast app. But its new AirTags, which attach to items to help find them, was criticized by the C.E.O. of Tile, which makes a similar product. Apple also said it would roll out new iOS privacy features — criticized by Facebook and other app makers — next week.
Understanding the ‘antimonopolist’ Lina Khan
Lina Khan’s nomination to the Federal Trade Commission is one of the clearest signs of progressive influence in the Biden administration. A Columbia University scholar who worked on a major congressional report about Big Tech and antitrust last year, Ms. Khan is a star in the constellation of competition law experts known as “antimonopolists.” Her confirmation hearing with the Senate Commerce Committee is today.
power of internet giants, which could win her some conservative support. Having a “strong” perspective probably isn’t an obstacle to confirmation, Mr. Hoffman said.
“Antimonopoly is more than antitrust,” Ms. Khan wrote in 2018. It shifts away from a “consumer” take on mergers managed by antitrust agencies to a broader approach using “policy levers” across the government and keeps workers, voters, the environment and more in mind.
Big Tech will be a likely focus at the hearing. But this would be a “disservice” to Ms. Khan, according to Mr. Hoffman. “At the F.T.C., a lot of the agenda is reactive,” he said. Companies file merger paperwork and regulators respond, whatever the industry. Ms. Khan has a broad perspective on competition law, Mr. Hoffman said, and today would be “a fair time” to ask what “objective standards” she’d apply.
“You have to have some morals.”
— Ari Emanuel, the outspoken C.E.O. of the entertainment conglomerate Endeavor, speaking in a New Yorker profile about returning an investment from Saudi Arabia after the killing of Jamal Khashoggi. Separately, Endeavor disclosed yesterday that it hopes to be valued at more than $10 billion in an I.P.O.
These ‘Roaring Twenties’ have railroad battles, too
Canadian National Railway yesterday offered to buy Kansas City Southern for $33.7 billion, topping a $29 billion bid last month by its rival Canadian Pacific. They’re jockeying over the chance to create the first railroad connecting major ports from Canada to Mexico. The bidding war reflects bullishness about an industry poised for growth if a post-pandemic boom ushers in this generation’s “Roaring Twenties.”
antitrust concerns made the counterbid “illusory and inferior.” Kansas City Southern said it would evaluate the new bid in accordance with its agreement with its original suitor.
mixed reception from freight shippers, who suffered in the last round of consolidation. And we haven’t yet heard from Senator Amy Klobuchar, who heads the antitrust subcommittee and represents key industrial interests in Minnesota.
Giving Coinbase a run for its (digital) money
The public listing of Coinbase, the largest crypto exchange in the U.S., generated a wave of excitement that competitors aim to ride. Among them is Binance.US, the third-ranked domestic crypto exchange, which yesterday named Brian Brooks — formerly Coinbase’s chief counsel and most recently acting U.S. comptroller of the currency — as C.E.O., beginning in May. “There’s a lot of buzz about my former employer, which is well-deserved,” Mr. Brooks told DealBook about Coinbase. “But it’s in everybody’s best interest if there’s more competition.”
Mr. Brooks’ first task is building trust with regulators. He says “managing reputation” is his biggest concern. Binance has shifted its operations throughout Asia since it was founded in 2017, and some say it played fast and loose with rules. The C.F.T.C. was reportedly investigating the company for allowing U.S.-based customers to trade crypto derivatives, which is banned (the agency declined to comment). Mr. Brooks insists he did “a lot” of due diligence on his new employer and dismisses “loose talk” about the exchange flouting regulations.
Binance’s group C.E.O., CZ Zhao, says he embraces regulation. Hiring Mr. Brooks is one way the company is trying to make the point. Binance also hired Max Baucus, the former Montana senator and ambassador to China, last month, along with other former regulators.
Binance.US sees potential to lead in undeveloped areas of the American crypto landscape, like derivatives and lending. Mr. Brooks said the company can learn from competitors like Coinbase and Kraken — and challenge them. That is, if he can convince regulators to bless its efforts to bring crypto into the financial mainstream, a preoccupation of players across the industry.
JPMorgan wants to end banker burnout, for real this time
Yesterday, JPMorgan Chase’s co-heads of investment banking, Jim Casey and Viswas Raghavan, announced policies aimed at improving working conditions amid record deal volume and banker burnout. The company has attempted similar things before. DealBook spoke with Mr. Casey about the latest plan — and whether this one will stick.
JPMorgan has recently hired 65 analysts and 22 associates, and plans to add another 100 junior bankers and support staff, Mr. Casey said. It’s targeting bankers at rival firms, as well as lawyers and accountants interested in a career switch.
similar efforts to protect junior bankers’ hours in 2016, but “it wasn’t stringently enforced,” Mr. Casey said. Why not? “Laziness.” This time, junior bankers’ hours and feedback will figure in senior manager performance evaluation and compensation.
“It’s not a money problem,” Mr. Casey said, so there won’t be one-time checks or free Pelotons after a rush.Junior bankers will get their share of the record $3 billion in fees JPMorgan earned in the first quarter.
Some things won’t change. Because banking is a client-service job, managers sometimes have limited control over workloads and hours. “You might do 100 deals a year, but that client only does one deal every three years,” Mr. Casey said.
How the bank will measure success: “Ask me what our turnover ratio has gone to and I will tell you,” Mr. Casey said. The goal, he said, is “lower.”
THE SPEED READ
Politics and policy
Senator Bernie Sanders is co-sponsoring a bill that would impose a financial transaction tax on Wall Street to drastically expand tuition-free access to community colleges and trade schools. (CNBC)
Twelve megadonors accounted for nearly $1 of every $13 raised by federal candidates and political groups since 2009, a new study found. (NYT)
Best of the rest
The Sacklers, the family that founded the maker of OxyContin, are worth about $11 billion, according to documents released by a Congressional committee. (WSJ)
“Behind the Mysterious Demise of a $1.7 Billion Mutual Fund.” (WSJ)
Amazon is opening a hair salon in London. It isn’t called Prime Cuts. (WaPo)
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Tim Walz, the governor of Minnesota, on Sunday responded to reports that the state’s police officers had assaulted journalists covering the unrest in a Minneapolis suburb, saying, “Apologies are not enough; it just cannot happen.”
Protests have erupted in Brooklyn Center, Minn., in the wake of the death of Daunte Wright, a 20-year-old Black man who was killed by a veteran police officer during a traffic stop. Law enforcement officers have fired tear gas or pepper spray into crowds and have made dozens of arrests.
“I think we all need to recognize the assault on media across the world and even in our country over the last few years is chilling,” Mr. Walz said in an interview with a local CBS station. “We cannot function as a democracy if they’re not there.”
On Saturday, a lawyer representing more than 20 news media organizations sent a letter to Mr. Walz and leaders of Minnesota law enforcement organizations detailing a series of alleged assaults of journalists by police officers in the past week. Journalists have been sprayed with chemical irritants, arrested, thrown to the ground and beaten by police officers while covering protests, wrote the lawyer, Leita Walker.
forced to the ground along with other journalists and photographed by the police.
A spokeswoman for The New York Times Company on Sunday confirmed that Ms. Walker’s letter represented the company’s response.
On Friday, a federal judge issued a temporary restraining order forbidding the police to use physical force or chemical agents against journalists. But Ms. Walker wrote that officers were still engaging in “widespread intimidation, violence and other misconduct directed at journalists.”
Mr. Walz said in a tweet on Saturday that he had “directed our law enforcement partners to make changes that will help ensure journalists do not face barriers to doing their jobs.”
“These are volatile situations and that’s not an excuse,” he said during the television interview on Sunday. “It’s an understanding that we need to continue to get better.”
If 2020 was the summer of the pandemic-enforced road trip, many people seem to be hoping that 2021 will be the summer they can travel overseas. But that’s a big “if.” Roadblocks abound, among them, the rise of variant cases in popular destinations like Europe and confusion about the role that vaccine “passports” will play as people begin crossing borders. The recent pause on Johnson & Johnson’s coronavirus vaccine adds a new wrinkle.
Still, there is reason for optimism. The number of vaccine doses administered each day in the United States has tripled in the last few months, and President Biden has said the United States is still on track to vaccinate every American adult who wants it by the end of May. Globally, the number of shots has been rising, with more than 840 million vaccines administered worldwide.
Currently, Americans are restricted from entering many countries for nonessential trips. Travelers can check the U.S. State Department website for specific country entry restrictions, the Centers for Disease Control and Prevention website to view recommendations for international travelers (vaccinated and unvaccinated), and the C.D.C. COVID Data Tracker to monitor country conditions.
Iceland announced on March 16 that it would allow all vaccinated travelers into the country, Delta Air Lines followed soon after with an announcement that in May it would resume its Iceland routes from New York’s John F. Kennedy International Airport and Minneapolis St. Paul Airport, and offer a new route from Boston.
it’s been reported that the Biden administration may cancel existing travel restrictions for foreign nationals coming from Britain, Europe and Canada, around mid-May.
Still, the market is very much in flux, Mr. Grant said, so even though airlines may be increasing their flight schedules, they will continue to adjust to demand, possibly consolidating some of the flights.
United Airlines plans to increase international flights, but will still be operating just about half of its 2019 schedule. Among the flights it is eyeing are those between Chicago and Tokyo’s Haneda airport and Tel Aviv. The company also plans to increase service from Los Angeles to Sydney and Tokyo Narita.
Beach destinations that are open to Americans have seen an increase in demand and United is scheduling 90 more flights per week to or from the Caribbean, Mexico, Central and South America than it had in May 2019.
Patrick Quayle, the vice president of the United Airlines’ international network, said the company had been adding more flights to countries that were open, but was uncertain when additional destinations like Canada — which is currently closed to American tourists and which has recently seen a rise in cases — would be added to that list. United is trying to be nimble, he said, so “if something were to open up, we can put our aircraft in the sky quickly.”
At American Airlines, new routes are planned this summer from New York to Athens and Tel Aviv, and from Miami to Suriname and Tel Aviv. (Israel has announced it would allow some vaccinated tourists into the country beginning May 23.) American also announced it was restarting a number of flights to Europe. Beyond that, the company won’t speculate on where air travel will open next.
Travel-Ready Center allows passengers with booked tickets to view country-specific entry requirements and schedule tests, and will soon allow customers to upload and store their vaccination records on the website before they travel. American’s online travel tool on the company’s website already allows passengers to store required documents like proof of negative coronavirus tests.
One airline that has been focusing on flights between the United States and international destinations is not a U.S. carrier, but a Middle Eastern one: Emirates. The United Arab Emirates opened up to leisure and business travelers last July and Emirates is already offering direct service to Dubai from Los Angeles, San Francisco, Dallas, Houston, Chicago, Washington, D.C., New York and Boston. Passengers can also connect from there to other destinations in the Middle East, Africa and West Asia. The company recently announced it would resume its flight between Newark and Athens on June 1.
health and cleaning protocols they put in place during the pandemic. Some have been adding on-site virus testing. In addition, so-called “touchless technology,” like phone apps for ordering food, will continue to be rolled out. A report by Medallia Zingle, a communications software maker, found that 77 percent of consumers surveyed said the amount of in-person interaction required at a business will factor into their decision on whether or not they visit that business.
Marriott, one of the world’s largest international hotel companies, with some 7,600 hotels under 30 brands, has implemented a set of practices it calls Commitment to Clean that includes sanitizing properties with hospital-grade disinfectants, using air-purifying systems and spreading out lobby furniture to facilitate social distancing. Some properties offer free coronavirus testing.
Recently the company announced a pilot program introducing self-serve check-in kiosks that create room keys and allow guests to bypass the front desk. It is also adding more “grab and go” food options.
Hyatt, another major international brand, is also continuing to focus on cleanliness. Currently, it is working with the Global Biorisk Advisory Council and Cleveland Clinic to create its Global Care and Cleanliness Commitment. Those practices will “remain in place during the pandemic and beyond,” Amy Weinberg, Hyatt’s senior vice president of loyalty, brand marketing and consumer insights, wrote in an email.
its Hôtel du Palais in Biarritz, France, one of its last remaining closed properties. Almost all Hyatt properties have been open since last December, and in February the company began arranging for guests staying at Hyatt resorts in Latin America who planned to travel back to the United States to get free on-site coronavirus testing.
IHG’s Kimpton brand with 73 hotels in 11 countries plans on modifying its protocols this summer where it feels they are safe and local ordinances allow — for example, bringing back the manager-hosted social hour, a guest favorite.
The four Kimpton hotels in Britain that closed because of the pandemic are currently scheduled to reopen by the end of May. A new Kimpton property in Bangkok that opened in October of 2020 to local guests will welcome international travelers this fall. The company also plans to open a new hotel in Bali and one in Paris later this year.
“Hoteliers are chafing at the bit” to reopen and are able to do so quickly, said Robin Rossman, the managing director of the hospitality analytics company STR. The global hotel sector, though, will likely take up to two years to make a full return, he said.
Geographic Expeditions, which did not run any trips last summer, reported that its bookings have picked up significantly in the past few months. It plans to run 20 international trips this summer, both to familiar destinations such as the Galápagos, and some off the beaten path, including Pakistan and Namibia. There are only about 25 percent fewer guests signed up now than there were for 2019 summer trips, according to the chief executive, Brady Binstadt, and they are “spending more than before — they’re splurging on that nicer hotel suite or charter flight or special experience.”
The company chose its first destinations based on entry requirements and client interest and then adjusted itineraries to avoid crowds, minimize internal flights and make sure guests had access to required testing. One expedition required flying a Covid-19 test into a safari lodge in Botswana via helicopter.
A guest recently moved a Geographic Expeditions trip planned for 2022 departure forward to 2021. The company hopes this will become a trend.
Abercrombie & Kent restarted its small-group and private trips last fall and early winter to places like Egypt, Costa Rica and Tanzania, and is continuing to expand choices as countries open up. “There’s been a noticeable spike in people calling who have had their first vaccine,” said Stefanie Schmudde, the vice-president of product development and operations. Bookings in March rose more than 50 percent over bookings in February, according to the company.
Ms. Schmudde monitors global travel conditions intently, and can rattle off names of countries that have been open to tourists for a few months and those she expects to open soon. She predicts Japan and China will open up this fall, but does not expect Europe to welcome many visitors any time soon.